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Washington County treasurer warns of tightening reserves, flags health‑insurance spike ahead of 2027 budget
Summary
Treasurer Al Nolette told the Finance Committee that while some fund balances improved in 2025, one‑time borrowing and a $1.2 million use of reserves in 2026 mean the county must find that money again for the 2027 budget; weekly health‑insurance claims spiked to $783,000 and may trigger stop‑loss protections.
County Treasurer Al Nolette told the Washington County Finance Committee on June 11 that 2025 closed with stronger-looking cash and asset totals but important constraints will shape the 2027 budget process.
“No, the cash looks strong, but it’s borrowed cash,” Nolette said in his presentation, referring to a tax anticipation note used to cover early 2026 payroll and retirement bills. He reported general fund cash rose by about $14 million and unassigned, unappropriated fund balance increased from $13,259,932.50 to $15,145,215.47, but stressed those amounts include short‑term borrowing and one‑time items.
Nolette flagged health‑insurance spending as the committee’s biggest near‑term risk. The county received a weekly health‑insurance claim bill of $783,000, driven by two high‑cost claimants; one claim is expected to exceed the stop‑loss insurance threshold, which will shift most of that exposure to the county’s insurer.
The treasurer said the county has already made two cash infusions into its self‑insurance fund this year and may need to do more if the trend continues. He cautioned the committee that traditional offsets—personnel savings and sales‑tax “breakage” funds—are smaller than in prior years because of personnel reductions and flat sales tax.
Nolette and Budget Officer Chairman Campbell also warned that the 2026 budget included a $1.2 million one‑time use of reserves that should not be repeated. Campbell said preliminary calculations already show a roughly 15% increase heading into the 2027 process before departments submit requests.
The treasurer reviewed individual fund changes: the Car Pool Fund assigned balance rose, County Road Fund moved from $127,654.58 to $1,333,829.96, and County Road Machinery Fund improved to $1,278,015.16 after rate adjustments by the DPW Superintendent. However, Sewer District No. 1 was described as “in trouble” and flagged for separate trustee reporting.
No immediate policy changes were approved; the committee received the report and was advised to monitor the self‑insurance fund more frequently. The meeting closed with the committee adopting several budget amendments earlier in the agenda and adjourning at noon.
The treasurer invited supervisors to review a 2025 budget analysis prepared by a former supervisor and to contact him with questions.
